§ 8-2.103. Definitions.

(a)

"Use" is defined to mean the exercise of any right or power over tangible personal property incident to the ownership of that property, including the purchase thereof by the purchaser or the receipt thereof by the purchaser. Sale of an article in the regular course of business shall not be deemed a "use" or "consumption" of said article by the seller.

(1)

"Use," however, does not include the keeping, retaining or exercising of any right or power over tangible personal property shipped or brought into this City for the purpose of storage only rather than sale and which is thereafter transported outside the City for principal use or consumption outside the City, and which property is actually so used or consumed.

(2)

It does not include the use of such property for the purpose of being processed, fabricated, or manufactured into, attached to or incorporated into, other tangible personal property which is to be transported outside the City and thereafter used principally outside the City, or which is to be subsequently sold or resold in the regular course of business.

(3)

It does not include the use of tangible personal property actually employed in the transportation or transmission of persons, property, gas, electricity or communications by persons engaged in the business of transporting or transmitting such persons, property, gas, electricity, or communications.

(b)

"Purchase" means any transfer of title, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property for a consideration.

A transaction whereby the possession of property is transferred but the seller retains the title as security for the payment of the price is also a purchase. A transfer for a consideration of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication, is also a purchase.

Purchase is defined to include also the act by the purchaser of requesting or directing (in person or by telephone, provided that either the purchaser is in the City at the time the request is made or the seller is in the City at the time the request is received) the withdrawal of tangible personal property from a point within the City, except a withdrawal pursuant to a transaction in foreign or interstate commerce which is immune from local taxation by reason of the provisions of the United States Constitution, for delivery to any place within or without the City, for the purpose of the transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever of the property.

(c)

"Sales Price" means that total amount for which tangible personal property is sold, valued in money, whether paid in money or otherwise, without any deduction on account of any of the following:

(1)

The cost of the property sold;

(2)

The cost of materials used, labor or service cost, interest charged, losses, or any other expenses;

(3)

The cost of transportation of the property prior to its purchase. The total amount for which the property is sold includes all of the following:

(aa)

Any services that are a part of the sale;

(ab)

Any amount for which credit is given to the purchaser by the seller.

"Sales Price" does not include any of the following:

(1)

Cash discounts allowed and taken on sales;

(2)

Any part of the amount charged for property returned by consumers and which amount is refunded either in cash or credit;

(3)

The amount charged for labor or services rendered in installing or applying the property sold;

(4)

The amount of any federal tax imposed upon or with respect to retail sales whether imposed upon the retailer or upon the consumer and regardless of whether or not the amount of federal tax is stated to customers as a separate charge, and the amount of any California State or municipal sales or use tax. (The term "Sales Price" does, however, include the amount of any manufacturer's or importer's excise tax included in the price of the property sold, even though the manufacturer or importer is also the retailer thereof, and whether or not the amount of such tax is stated as a separate charge);

(5)

Transportation charges separately stated, if the transportation occurs after the purchase of the property is made.

(d)

"Sale" means and includes:

(1)

Any transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise in any manner or by any means whatsoever, of tangible personal property for a consideration. "Transfer of possession," "lease," or "rental" includes only transactions found by the Director of Finance to be in lieu of a transfer of title, exchange or barter.

(2)

Any withdrawal of tangible personal property from a point within the City, except a withdrawal pursuant to a transaction in foreign or interstate commerce which is immune from local taxation by reason of the provisions of the United States Constitution, for delivery to any place within or without the City, for the purpose of the transfer of title or possession, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of the property for a consideration.

(3)

The producing, fabricating, processing, printing or imprinting of tangible personal property for a consideration for consumers who furnish either directly or indirectly the materials used in the producing, fabricating, processing, printing or imprinting.

(4)

The furnishing and distributing of tangible personal property for a consideration by social clubs and fraternal organizations to their members or others.

(5)

The furnishing, preparing, or serving for a consideration, of food, meals, or drinks.

(6)

A transaction whereby the possession of property is transferred, but the seller retains the title as security for the payment of the price.

(7)

A transfer of the title or possession of tangible personal property which has been produced, fabricated, or printed to the special order of the customer, or of any publication.

(Sec. 3, Ord. 1088-N.S.)